How to Get up to €1000 Back in Rent Tax Credit: A Complete Guide
The Rent Tax Credit was introduced in Budget 2023 in Ireland and will continue until 2025. It is available for anyone who rented private accommodation in 2022 or currently renting in 2023. You can claim this tax credit up to the value of €500 for 2022 as a tax rebate and a further €500 for 2023 in the form of a tax credit for singly taxed individuals.
This credit is also available for jointly assessed couples for 2022, and they can receive up to €1000 in the form of tax credits against their 2023 PAYE income.
Parents paying rent on behalf of their children who are in university can also claim a credit up to €500 per parent.
Meaning a total tax credit of €1000 per year. Additionally, if you are renting private accommodation to facilitate accommodation while you work, you may also be eligible to claim this tax credit. For example, an individual from Cork who lives and rents in Dublin for work purposes.
Why RTC was introduced?
The Rent Tax Credit has been introduced to assist tenants in dealing with the rising cost of living. It applies retrospectively for 2022 as well as going forward to 2025. However, this newly introduced tax credit is only for those paying for privately rented accommodation and not for those receiving social housing support.
To claim the Rent Tax Credit, you must have some documentation such as the address of the property, the total amount of rent paid, the date you began renting and the name of the landlord/letting agent. You must also have proof that you were in fact renting in 2022. The property you are renting must be registered with the Residential Tenancies Board (RTB) to claim the Rent Tax Credit. In certain cases, the Rent Tax Credit applies for tenancies which do not need to be registered with the RTB. This includes ‘rent-a-room’ or ‘digs’ type of arrangements.
Some important notes to keep in mind:
- Neither the child nor the individual paying rent can be a relative of the landlord.
- Where the claimant and landlord are parent/child, the Rent Tax Credit is not available.
- Where the landlord is a Housing Association or Approved Housing Body, the RTC is not available.
- Payments must be made under a tenancy.
- A formal claim must be made to receive the credit.
To claim the Rent Tax Credit for 2022, you can sign into MyAccount via the Revenue website, select the ‘Complete your Income Tax Return’ option and enter the relevant information. Real-time in-year claims will be facilitated by using Revenue’s Real-Time Credit facility through MyAccount for the years 2023 to 2025.
It is estimated that over 400,000 renters are eligible for this tax credit, but only 138,000 claims have been made so far. If you are eligible for the RTC, it’s recommended to claim it without delay as the credit is only available until 2025.
How to claim the Rent Tax Credit
If you are a PAYE taxpayer, you can claim the tax credit for rent paid in 2022 in myAccount:
- Sign in to myAccount
- Go to the ‘PAYE Services’ section
- Click ‘Review your Tax 2019–2022’ and select 2022
- Click ‘Request’ under the ‘Statement of Liability’ section
- Click on ‘Complete Your Income Tax Return’
- In the ‘Tax Credits & Reliefs’ page, select ‘You and your family and click on ‘Rent Tax Credit’
- Enter the information requested
Revenue has a quick guide to making a tax return (pdf) and a detailed guide to making a tax return (pdf).
You can also claim now for rent paid in 2023 if you are a PAYE taxpayer:
- Sign in to myAccount
- Go to the ‘PAYE Services’ section
- Click ‘Manage Your Tax 2023’
Here are the key takeaways:
- The Rent Tax Credit was introduced in Budget 2023 and will continue until 2025.
- The tax credit is available for anyone who rented private accommodation in 2022 or currently renting in 2023.
- The credit is worth up to €500 for 2022 and a further €500 for 2023 for singly taxed individuals.
- Jointly assessed couples can receive up to €1000 in the form of tax credits against their 2023 PAYE income.
- Parents paying rent on behalf of their university-going children can also claim a credit up to €500 per parent.
- The Rent Tax Credit is not available for those receiving social housing support.
Sources: https://www.revenue.ie https://www.gov.ie https://www.rtb.ie https://www.citizensinformation.ie/
